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26yo First time building retirement portfolio

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  1. #1

    Join Date
    Aug 2020
    Posts
    1

    Question 26yo First time building retirement portfolio

    Hi guys,

    I've been reading the posts here for a while but I haven't decide yet how I will start my investment porfolio.
    I'm 26yo, from latino america, planning to live in HK for a couple years more.
    I have around 200k hkd in my saving account with Citibank ready to invest now.

    My plan for now is to buy ETFs index once every 6 months and hold for long term. Basically since I aim to work remotely and eventually move to a cheaper location, I want to be building my retirement portfolio based on this investment.

    My main question is:
    Which brokerage platform is best to deposit, buy ETF index and hold long term (+10 years)? IB has 10usd/month fees and not sure if it's safe to hold +10 years, Citibank is expensive. Which options I have?

    About index ETFs ,I'm aware the US 30% tax and Irish 15% tax, that apply if I surpass the 60k usd investment but I'm not near that sume yet. So I could invest on S&P500 domicile in US until I'm near 50k usd and then change to another platform.

    I appreciate the kick start suggestion for a retirement portfolio, thank you!
    Eventually when I learn more about investment, and get over 50k usd I'll considere more aggressive approach

    Mrs. Jones likes this.

  2. #2

    Join Date
    May 2009
    Posts
    1,308
    Quote Originally Posted by lmarg:
    Hi guys,

    I've been reading the posts here for a while but I haven't decide yet how I will start my investment porfolio.
    I'm 26yo, from latino america, planning to live in HK for a couple years more.
    I have around 200k hkd in my saving account with Citibank ready to invest now.

    My plan for now is to buy ETFs index once every 6 months and hold for long term. Basically since I aim to work remotely and eventually move to a cheaper location, I want to be building my retirement portfolio based on this investment.

    My main question is:
    Which brokerage platform is best to deposit, buy ETF index and hold long term (+10 years)? IB has 10usd/month fees and not sure if it's safe to hold +10 years, Citibank is expensive. Which options I have?

    About index ETFs ,I'm aware the US 30% tax and Irish 15% tax, that apply if I surpass the 60k usd investment but I'm not near that sume yet. So I could invest on S&P500 domicile in US until I'm near 50k usd and then change to another platform.

    I appreciate the kick start suggestion for a retirement portfolio, thank you!
    Eventually when I learn more about investment, and get over 50k usd I'll considere more aggressive approach
    The tax you mentioned is dividend tax and will have to pay that anyway on dividends (it will be deducted from the payout, or within the fund if it’s accumulating)

    The 60k threshold is the threshold for paying inheritance tax (only applies for investments directly in the US so not the UK)

    Regarding which broker to use, there are not many options if you want to buy LSE funds, if you buy US funds you will have more options as some banks and other brokers (like BOOM and some new tech brokers) allow you to trade in the US. But then you will pay the 30% tax instead of the 15% for LSE.

    Have a look at this forum there are many threads talking just about which brokers are available for us here.
    Morrison likes this.

  3. #3

    Join Date
    Dec 2002
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    A couple of random thoughts...

    - Don't overthink it, find the broadest of etfs at a low cost.
    - I am biased towards AOA for building an all world core investment.
    - Keep costs low... You are young enough to postpone retirement and dividend tax issues for a little bit


  4. #4

    Join Date
    Jan 2019
    Posts
    1,416

    too young for retirement. ride the bubble


  5. #5

    Learn first, learn more. Then ask yourself what you do not know yet.

    The greatest risk and the no 1 mistake we can make, is putting our money into something that we do not fully understand.